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2011/2012  KAN-CMIT_IEB  Information, Economics and Business

English Title
Information, Economics and Business

Course Information

Language English
Point 7,5 ECTS (225 SAT)
Type Elective
Level Full Degree Master
Duration One Semester
Course Period Spring
Changes in course schedule may occur Monday 13.30-16.05, week 8-14, 16-18
Time Table Please see course schedule at e-Campus
Study Board
Study Board for BSc/MSc in Business Administration and Information Systems
Course Coordinator
  • Ioanna Constantiou - Department of Informatics
Main Category of the Course
  • Information Systems
  • Innovation and entrepreneurship
  • Economics, macro economics and managerial economics
Last updated on 29 maj 2012
Learning Objectives
During the course the students will develop analytical skills and abilities to assess market developments, and thereby, improve their capabilities to engage in individual and group decision making under uncertainty and solve specific business problems. Upon completion of the course the students will be able to develop and present concrete solutions to market problems and advise firms about how to deal with information technology challenges and opportunities.
  • Explain how economic theories have been applied to the Information and Communications Technologies (ICT) markets, through examples based on business cases or sectoral analysis.
  • Use a set of theoretical tools to analyse prominent economic phenomena in the ICT markets
  • Identify and reflect upon the strategic implications of the analysed phenomena for the different market players
The course builds on the teaching of an introductory course in Economics at the bachelor program.
Synopsis with oral individual exam:
Assessment Oral with Written Assignment
Marking Scale 7-step scale
Censorship Internal examiners
Exam Period May/June
Aids Please, see the detailed regulations below
Duration 20 Minutes
Synopsis (max 5 pages) with oral individual exam .
The re-take takes place on the same conditions as the ordinary exam.
Course Content

Economics of information and organization form the core of this course. The course will start by presenting some basic theories from industrial organisation and business economics that are prominent for managing information, efficiently, and for analysing business strategies in the Information and Communications Technologies (ICT) industries. Then, selected issues with wide impact on individual decision making, firm’s strategy and market analysis will be presented. Indicative examples include pricing of information goods, auction design, the boundaries of the firm, the firm as a nexus of contracts and strategy making in the online markets.

Taking these topics as points of departure the course will address some fundamental economic issues for the ICT industries such as: What are the optimal pricing strategies for information goods? How do firms maximise profits in the ICT industries? What are the costs of IT products and/or services development? How do firms deal with the uncertainty in case of IT investments? What are the different types of Information Technology markets? How do firms exploit their strategic resources in the ICT environment? How do firms ignite positive feedback? When are business networks successful in IT markets? Why do firms design auctions for selling IT services or products?

Teaching Methods
The course will be conducted in sessions of three time-slots (3x45). Each session is strongly based on students’ participation. Following the introduction, each session includes lectures presenting specific theoretical issues, practical examples to further the understanding of the theory as well as students’ participation in the discussions about specific business cases.

Indicative course literature:
Jeff Jarvis (2009). What would Google do?, HarperCollins Publishers, NY.

Shapiro, C. and H. R. Varian. Information Rules. A Strategic Guide to the Network Economy. Harvard Business School Press, Boston, Mass. 1999.

Rysman, M. (2009). The Economics of Two-Sided Markets. Journal of Economic Perspectives, 23(3), 125-143.

Gallaugher, J. M., Y.-M. Wang. (2002). Understanding network effects in software markets: Evidence from web server pricing. MIS Quart. 26(4) 303–327.